An economy is what creates rich people, you don't need rich people to have a functioning economy.
Somalia is actually a good example of how a more free market can destroy an economy/country. This is because Somalia barely has a functioning government, there is no middle class in Somalia, it is just rich and poor and the rich rule the country while the poor do whatever it takes to survive, leading to crime, theft, piracy, etc... Here is a good article about what is happening in Somalia.
https://globalinequalityandhealth.wordpress.com/2015/04/03/somalia-a-lawless-state-of-inequality/
in which the author of the very BAD , incorrect false but politically correct article states.
The top 100 billionaires of the world had accumulated $240 billion in wealth in 2012,
which is misleading...they DID accumulate....what they created the wealth didn't exist before. Then they began to distribute it. They used it to build factories, hire people and DO STUFF with it. Money doesn't do anyone any good stuffed in a mattress.
I was only sharing that so you would have a better understanding of what is happening in Somalia.
As I have explained in my previous comments, money only moves from person to person within any economy. When a person becomes wealthy all they did is move money from other people to themselves (this can be accomplished in various ways, and yes it may involve building infrastructure and hiring people). They are creating wealth for themselves but that only leaves less money in the economy for other people to earn/spend.
Yes you are correct, that is exactly what happens anytime someone accumulates wealth from the economy, it is like money being stuffed in a mattress. Because they have more money than they can spend it means there is less money within the economy for other people to earn/spend.
And that is exactly what has happened in Somalia, the rich have stuffed all their money in their mattresses.
As I have explained in my previous comments, money only moves from person to person within any economy. When a person becomes wealthy all they did is move money from other people to themselves (this can be accomplished in various ways, and yes it may involve building infrastructure and hiring people). They are creating wealth for themselves but that only leaves less money in the economy for other people to earn/spend.
Nope.
You are SO..SO incorrect. That is flat-out WRONG.
Wealth is created, not just moved around. The size of the pie is increased.
Nice guns though...I wish I had one (or many)
I imagine those little kids have a problem handleing the recoil. AK-47's tend to KICK.
Everything I am saying is mathematically correct. Becoming wealthy is not a creation of money it is an accumulation of money that is already in circulation (it is just the currency supply moving from person to person).
The only time the size of the pie is increased is when in a fiat currency system economy the central bank increases the monetary base and/or banks increase the money supply via fractional reserve banking by creating more debt. Unfortunately the only thing that does is increase inflation and reduces the value of money, which hurts the working/poor class.
Inflation does not matter to rich people because they already have more money than they can spend.
This math?
This chart you shared shows GDP Per Capita which usually always increases because most countries today use fiat currency economic systems where central banks and regular banks increase the money supply over time, so more money in circulation means some people will earn more money. But as you already know from this chart you shared earlier the more money is created the more it drops in value
The math I am talking about is this math in the chart below
As you can see, as some people are accumulating wealth in an economy other people are losing wealth, because the money is moving from person to person.
I assure you my intention is not to misinform you or lie to you, there is nothing in it for me, I am simply telling you how the economy works mathematically. It is the same in all countries and all economies. The only thing that changes between countries are laws/policies, are they more capitalist, more socialist, more communist, no laws at all, etc, etc... This is what changes human behavior and determines how they can earn, spend and/or accumulate currency depending on what country you live in.
That is why I made my original point about Thatcher's quote being false, there is always money in every economy, you can never run out of other peoples money, you can be rich one day and poor the next, the money did not run out it simply moved to another person.
I have explained this to you the best that I can, I encourage you to study the economies of different countries and how money flows through the economy, this is an excellent video from an economist who is very knowledgeable about the global economy and economic history
https://youtu.be/ynbgMKclWWcBut don't just take his word for it, if you want to understand a topic you have to be willing to learn from many different people who have studies that topic and determine for yourself what makes sense...
I have a masters degree in Business with a minor in economics.